Understanding Resource Credits: The Steemit(alternative)blog
There has been much talk of Resource Credits ("RC") and what that means for Steemians.
Now, if you have just about managed to understand the difference between, Steem, Steem Power and Steem Backed Dollars. Here's one more bit of terminology you will need to understand to get the most out of your Steem Blockchain experience.
So what are Resource Credits?
This is the fuel that the Steem Blockchain runs on. Every action taken on the Blockchain now has a cost that needs to be paid in Resource Credits. Don't have enough Resource Credits. Tough luck, you can't afford to do that action.
Where do Resource Credits come from?
Resource credits are continuously being generated by the Steem Blockchain and allocated to Steem Power holders. That's right, the more Steem Power you hold, the more Resource Credits you are allocated and the more Resource Credits you can hold at any one time.
Imagine that solar panel being bigger and that storage unit growing larger with more Steem Power that you hold.
Like a solar powered house, no matter how much sunshine there is outside, you can only ever absorb as much as allowed by the size of your solar panel and you can only store up to the maximum your battery can hold.
In the Steemverse, the size of your solar panel to collect Resource Credits and the your ability to store Resource Credits are determined by the amount of Steem Power you have. Remember, holding Steem or SBD won't generate Resource Credits for your account, only when you power up and have Steem Power will you start generating Resource Credits.
So you can imagine, if your Steem Power is low, you are limited to how much you can collect and store. You may not have much in storage to spend on posting, commenting and other Blockchain activity such as transfers and delegations.
If you're a large Steem Power holder, your ability to collect enough resource credits and store it will be much larger. You can comment and post without much concern about your Resource Credit balance.
So if you plan to be here for a the long haul, I suggest getting hold of as much Steem Power as possible.
You won't be the only one chasing Steem Power, each new dapp that wants to run on top of the Steem Blockchain will need Steem Power to generate those Resource Credits so they can pay for the transactions they want to carry out on the Steem Blockchain.
How have Resource Credits effected you?
For me, I have not been limited in my regular activities on the Steem Blockchain since the introduction of Resource Credits, but I have heard of those with Steem Power below 15 having some issues. Have you had any problems? Do you think this is a good way to decide who gets to use the Steem Blockchain?
I have had no issues.
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That's good to know. I think you're Steem Power is also at a comfortable level! It seems to be effecting those users with steem power below 50, with those around 10 being affected more acutely.
Yeah I can understand that. I think the intent is to entice people to put some money in steem to stimulate growth. I know that I personally put in 215 and I've earned more than that since then.
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I think the same people who are complaining about low steem price now will be the same ones complaining about it being too high for them to buy in a few years time. Human psychology is strange isn't it?
You may be right. Some people want something for nothing.
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or to be more nuanced, some people want reward with no risk!
True but is there really that much of a risk here? I've been doing this for a month and I've already over doubled my investment
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Thanks for this overview! More people need to be educated about how Steem works.
You're most welcome @programmingvalue
Thank you for the well thought-out and well explained article. I like the metaphor of solar panels.
I think anyone who has less than a 100 SP will have trouble with RC. Anything 100 and above will be comfortable. I am working within my allocation. Sometimes, I have to forego upvotes and comments, so that there will always be some for - in case of 'emergencies'.
By the way, another notch up in your reputation. Slowly, but surely, and I guess it will be easier with each notch up. Have a great weekend!
I agree with you, my friend - the solar panels metaphor is very good.
Well, I have got about 25SP and it is not a problem but I am highly probably not the best example due to my rare activity. Moreover in these days.
I think anything below 20SP could be a definite struggle.
I believe I can share and like about ten posts daily. More than this could turn out to be a bit of a problem. I would probably run out of RC (~20% per day gets restored, not dead sure about this number).
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I have not any issues but I know it is because of my Steem Power stake. However, I have been claiming accounts every week which brings down my resource credit percentage below 2% sometimes and it does not restrict me from actively engaging, upvoting or posting. The developers and witnesses worked quite a bit soon after the Hard Fork to find the right balances of costs and I think they have done a great job. They are also working on potential features that would allow for the delegation of resource credits which will help those with limited amounts.